Common use of Interest on Notes Clause in Contracts

Interest on Notes. (a) The Notes shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360 days) at a rate per annum of 14%; provided, however, that, upon an Event of Default under Section 7.1 herein, the rate of interest per annum shall increase to a rate per annum of 21%. (b) Interest on the Notes shall be payable on the earlier to occur of the Final Maturity Date and the consummation of an Equity Financing.